The 2020 Presidential Election is in progress, and many things are impacting the markets. John Thur, CFA, Dan Neiman, CIO, and Paul Meeks, CFA are on the Independent Solutions Wealth Management Investment Committee and have put together three big market commentaries. Here is a sneak peek of the articles the investment committee has written.
As we closed out the third quarter, the S&P 500 Index had turned positive for the year, +5.57%. Can you believe that?
Small businesses continue to suffer, most of the states and cities are still in some form of restricted activity, a large contingent of employees are still working from home, 12,000,000 people are still unemployed, schools are either partially open or doing full time computer learning, colleges and universities are already closing campuses or restricting student activities, pro sports are still restricting fan attendance and on and on.
So, why are stock prices continuing to make new highs?
Will anything derail the rapid recovery from the March 2020 market lows?
January kicked off bang, but in March, the market spiraled downward and with shut downs across the world, the economy went down with it as the coronavirus spread across the world. Now the market is back but really only pushed by a handful of growth stocks. Somehow the markets continue to ignore the spread of Covid-19, protests, politics, countries being closed to travel, and states now going back to closing certain areas of the economy, to have the best six month performance in decades.
What happens as we close down 2020 and head into the New Year?
In my view, the greatest risk to the economy, and thus to the market, is that Congress doesn’t quickly pass a fiscal stimulus bill to follow the CARES Act in March. Stocks are rallying today (October 20) because a deal may be struck soon between House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin. We shouldn’t put much stock in such a rumor, but the passage of a $2 trillion deal would help many investors relax including several who normally are fiscal conservatives. There’s just too much at stake in the next year or two without more fiscal support to supplement the Fed’s monetary stimulus, which appears to be exhausted.
Investment Advisory Services offered through Independent Solutions Wealth Management, LLC, an SEC Registered Investment Adviser.
All opinions expressed Paul Meeks, Dan Neiman, and John Thur are solely Meeks’, Neiman’s, and Thur’s opinions and do not reflect the opinions of Independent Solutions Wealth Management, LLC (“ISWM”). You should not treat any opinion expressed by Meeks, Neiman, and Thur as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion for educational purposes only and does not constitute investment, legal or tax advice, an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. Meeks, Neiman’s, and Thur’s opinions are based upon information he considers reliable, but neither ISWM nor its affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Meeks, Neiman, and Thur, ISWM, its affiliates and/or subsidiaries are not under any obligation to update or correct any information provided on this website. Meeks, Neiman, and Thur statements and opinions are subject to change without notice. No part of Meeks, Neiman, and Thur compensation from ISWM is related to the specific opinions he expresses. Past performance is not indicative of future results. Neither Meeks, Neiman, and Thur nor ISWM guarantees any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. This material does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. Before acting on information, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from an investment adviser.